The Power Sector Investor (Nigerian Guide) Part C

3.0 FINANCING AND CURRENCY CONTROL

3.1 Funding Strategy

[EDITED] Power and renewable energy projects are inherently capital-intensive undertakings, necessitating robust and strategic financing approaches. The Nigerian landscape offers a variety of funding channels, each with it's own structure and requirements.

Types of Funding:

• Project Finance: This method typically involves non-recourse or limited-recourse debt, where repayment is primarily dependent on the project's future cash flows. A notable example is the International Finance Corporation (IFC), a member of the World Bank Group, which has demonstrated its commitment to Nigeria's renewable energy sector through significant investments. IFC provided a $5 million investment in Husk Power Energy Systems Nigeria Limited to expand solar hybrid mini-grids in Northern Nigeria, as part of its $200 million Distributed Access through Renewable Energy Scale-up (DARES) Platform. Furthermore, Nigeria, in